CRA rejects Tawa case

In a spirited and lengthy analysis, CRA has rejected an argument that a private corporation does not have a "dividend refund" amount if, in fact, it is not eligible to receive the dividend refund because it did not file for the refund on a timely basis.  According to CRA, the Tax Court in Tawa Developments was fooled by the ordinary meaning of the word "refund" in the defined term "dividend refund" (suggesting to the Tax Court that the amount must actually be received), whereas the wording of the definition itself contains no such requirement.

Neal Armstrong.  Summary of 18 October 2012 T.I. 2012-0436181E5 under s. 129(1).